Fixed or variable rate mortgages

We live a historical moment of very low or negative interest rates, something never seen in the Spanish mortgage market. The winds that arrive from the USA is that they return the highest types. Let’s look at some questions about the effect of interest rates on mortgages in Spain.

How would a rise in interest rates affect housing investment?

The interest rate increases increase the monthly installments of the mortgages at a variable rate, at the time of the periodic reviews, and of the new fixed rate mortgages that reflect the increase. That is to say, in mortgages at a variable rate, there is a six-month and one-year offset in the increase in installments, and does not affect the already signed fixed mortgages, but the newly created ones.

Taking into account that the effect is not immediate, a rise in interest will increase to the installments that are paid for a mortgage, which added to the wage devaluation already experienced by the mortgaged potentials since mortgages, as a general rule, do not have terms Over 30 years, it will influence the maximum price that an average customer can pay for a house. In other words, higher interest rates end up affecting the price of houses, if wages do not increase at a proportional rate.

What percentage of Spanish savings is invested in housing?

What percentage of Spanish savings is invested in housing?

Approximately 27% of Spanish investments are in financial assets, while the remaining 73% is in non-financial assets, primarily in brick. This collides, with data from Inverco to 2012, with 70% of investments in US financial assets, a country in which only 30% of investments are in homes and non-financial assets.

What percentage of the new mortgages corresponds to the fixed rate and the variable?

If we take the latest data published by the INE, in December 2016, 68.4% of mortgages at a variable rate and 31.6% at a fixed rate were signed, a phenomenon that is unparalleled in recent decades. According to the trend, it is possible that the percentage of fixed mortgages eventually exceeds that of variables.

To what extent does the rise in interest rates affect the type of mortgages contracted?

An increase in interest rates, if the bank considers that it will be a scenario sustained over time, will cause them to offer only variable mortgages again, so that the risk of rate hikes is submerged by their client.
As long as we see that banks actively offer fixed rates, their analysis departments consider the most likely scenario to be type stagnation, not increases.

For those already mortgaged at a fixed rate, that there is a scenario of interest increases “benefits” them from the point of view that they will pay stable rates for decades and, on the other hand, those mortgaged at a variable rate will see their quotas grow after each review. Or the opposite if the types remain low for a long time.


Passive Income – Ways to Make Money


Passive income is money that is earned without active work. So you can basically be traveling across the globe while dripping money into your account. However, passive sources of income do not emerge from scratch and often require a lot of work in the beginning. However, investing a little time in the beginning can earn you multiple returns later.

You can start earning a passive income today by setting up a savings account. With a savings account, your money is protected from market fluctuations, and you get a guaranteed return on your money every year. Before finalizing your savings account, it’s also a good idea to compare different account options to find the best return on your savings.

Passive Income – Ways to Make Money

There are several passive sources of income, which we will now review.  These sources of income vary according to both the risk they carry and the expected return.

Digital Products

One of the most convenient ways to earn passive income is to sell and share your expertise online. This works especially when you have reached the level of expert in a field and are in a good position to teach and educate others. In practice, this often means that you only have to invest a lot of content in the beginning: once the content is ready, you can basically sigh for relief and have to wait patiently for sales.

Nowadays, there is a growing variety of paid online courses and webinars that allow you to learn new things, or even complete an entire degree remotely. For example, we offers different types of online courses in Finnish, and Webinars OnAir offers its own paid webinars. In addition to this, there are various types of membership sites that provide access to different content and groups as a paid member. Nonetheless, perhaps the most well-known ways of selling your online know-how are the preserved e-books and guides.


Perhaps the most well-known source of passive income is books. Making a book is basically easy because you just need to know more than writing. You also don’t need to be a writer to write a book, because each of us has unique experiences and perspectives on life. Therefore, in principle, it is easiest to write a book about your own life experiences.

Although it may be easy to write a book based on one’s own life experiences, it may not be interesting to other people. Therefore, it is worthwhile to take advantage of your own potential knowledge and write about something that people can learn something new. If you don’t have any other interesting knowledge, you can also try to write from a completely different perspective, as it is often difference or uniqueness that makes people buy a book.

Online advertising

If your website has a high quality content and is somewhat popular, other companies may want to promote their products there. Thus, online advertising can promote other companies’ offerings on their own websites and thus make money. There are many forms of making these ads. Google does, for example, pay per click and pay per sale advertising: Pay per click makes money when someone clicks another company ad on your website, and pay per sale makes money every time a customer leads from your page to an advertiser’s site product or service. This means that the user clicks on the ad of another company on your website, but you do not get paid for this click, but instead on the final sales of the commission. However, if you do not like these arrangements,


When creating your own content or product is not inspiring and special expertise is hardly found in any industry, the alternative to earning a passive income is to set up your own online store. So simply acting as a middleman for other companies, helping them sell their products to customers. In this respect, you would not need so much creativity and experience to produce content, but rather you should master e-commerce and invest in the ease of use of your store.

So what would you sell in your own online store? Is it perhaps a country that you often go to for a holiday because you like the local culture? In that case, an alternative would be to specialize in selling goods from a particular country. It is also worth considering whether there are some special products that are difficult to access in Finland and that could be facilitated by setting up an online store.


Perhaps the oldest of all passive sources of income is investment, which in this article means mainly housing, equity and fund investment. Investing is fundamentally different from the above four ways of earning a passive income in that it already requires some capital, and often knowledge of the economy and the prevailing market situation. For this reason, it may not be advisable to dive into your placement without first exploring its specific features.

Investing in a home means buying an apartment with an investment in mind. It is the least risky and stable of these three forms of investment, the value of the object does not fluctuate strongly as, for example, in corporate stocks.

In equity investing, however, money is invested in one or more company shares. As a result, it is less volatile than investing in a home, but higher risk exposure also entails higher return expectations. Equity investments also include fund investments, where equity investments are diversified among many companies. Fund investments include, for example, passive index funds that follow a market index and mutual funds managed by a dedicated fund manager. Funds are a less risky investment vehicle than ordinary equities.

Patents and Licenses

If you are the inventor type and your head is just full of good ideas, it may be possible to get a passive income through patents and licenses. However, this is not the easiest way to make money, as finding a patentable product or invention can be the result of hard research. In addition, the patent process can take a long time and also tax a relatively large amount of money on the individual’s purse. Because of this, only larger companies often have the time and money to make patents. Therefore, it is a good idea to make sure that the patent you are applying for will have some financial value before you start the patent application process.

If, after all, you succeed in patenting a worthwhile invention, you can at best withdraw for the rest of your life. This can be the case especially if a larger company like Samsung considers your patent a golden solution to a problem and they want it to move on to using your patent on several of their own products. This allows them to either make a license deal with you, paying you a certain amount, for example, per year for using your invention, or alternatively offering to buy your patent for themselves. If this happens, you may want to prepare for patent negotiations by thinking about a large enough amount of money to avoid selling your own invention cheaply.

Tips for choosing a passive source of income

After hearing all of the above, you may be a little more interested in making money passively. The next question that may come to mind is how to start a business that relationships on passive income in practice.

The starting point is meaningful work

As with almost all work and money making, passive income makes sense as well. So don’t start doing anything in the long run that you don’t think makes sense, because before long, you often get tired of doing such work and start to become very weary. It is also true that this idea of ​​the idea may not be fully applicable to passive earning money, the idea being to make money with as little work as possible. However, it must be post in mind that, notwithstanding the foregoing, such income also requires periodic management and maintenance, especially in the case of some form of investment business.

Choose something you already know

When choosing a source or source of passive income, it is worth considering what you already know a lot about or where you have gained expert knowledge. This makes getting started, clearly faster, without having to spend valuable time learning new things and gaining experience. This will also ensure that you have something valuable to give in terms of content and know-how, for example, if you are designing a blog or website to present your own ideas and sell your expertise to others.

Simplicity and low financial effort

If you are very inexperienced with passive income, you should start looking for it with only a small financial effort. In addition, it is a good idea to ensure that you are able to withdraw from the project if not all goes to waste. For example, starting a home or equity investment without any previous experience is very risky as it usually involves larger amounts of money. In addition, each of these investment methods is heavily dependent on surrounding market factors, which means that they are controlled by forces that are completely independent of you. As a result, successful investment management often requires some experience or knowledge of the industry. In these cases, it is easier to start a passive income generator even digitally from the web, for example,


3 key differences between a AQOS and vehicle insurance

car loan with money cash

In Peru, when it comes to insuring a car, there are two products on the market: Obligatory Traffic Accident Insurance (AQOS) and vehicle insurance. They are equal? The truth is that each one has a different purpose and other details that show that these are two different products.

Here are three differences that you must be clear in order to make proper use of each product:

The AQOS does not cover cars

car loan with money cash

The AQOS was created to deal with the victims of accidents, that is, all those involved in the accident both inside and outside the car. Everything related to the vehicle is not covered.

There are no “types” of AQOS. AQOS coverage is established and although companies offer extra benefits for buying it, their function and maximum amounts remain the same. In the case of vehicle insurance, the coverage is different since they are created for different needs: All risk, Total loss, Vehicle assistance, etc. If the way to finance the car will be through a vehicle loan, it is worth considering these steps to choose one that not only fits your profile, but also gives you the facilities to get out of debt fast.

Vehicle insurance is not mandatory

Driving without AQOS through national territory makes you a fine because your car is taken to the warehouse until you purchase insurance; On the contrary, vehicle insurance is optional and many people drive without it, risking an accident and having to leave their pocket money. The process to request them is not complicated, since the amount of options that the market has makes there is one for the situation of each client. Ideally, compare at least four offers before selecting. You can use web comparators to avoid going through all banks

Both products can be found in different insurers, compare the AQOS and vehicle insurance to choose the option that best suits your profile.